The OAS Allowance and the Allowance for the Survivor

Who qualifies for the Allowance

You must meet all of these:

• be 60 to 64 years old;
• have a spouse or common-law partner who receives the OAS pension and is eligible for the GIS (a partner who is deferring OAS does not count);
• be a Canadian citizen or legal resident, living in Canada;
• have lived in Canada for at least 10 years since age 18;
• have combined income below the limit in the table; and
• not be under an immigration sponsorship agreement.

The Allowance is designed for a couple where one person has reached 65 and the other has not. The older partner's GIS is calculated at the "spouse receives the Allowance" rate, which is the reason that row appears in the table above.

Who qualifies for the Allowance for the Survivor

• be 60 to 64 years old;
• your spouse or common-law partner has died, and you have not remarried or entered a new common-law relationship;
• be a Canadian citizen or legal resident, with at least 10 years of residence in Canada since age 18;
• have your own income below the limit in the table; and
• not be under a sponsorship agreement.

If you were already receiving the Allowance when your partner died, Service Canada switches you to the Allowance for the Survivor automatically. Otherwise you must apply. The survivor rate is higher than the regular Allowance because it replaces a household's second income rather than supplementing it.

How the amount is calculated

Like the GIS, both benefits are tested on the previous year's net income, recalculated every July from the tax return you file in the spring. OAS and the supplements are not counted, and the first $5,000 of employment or self-employment income plus half of the next $10,000 is excluded. If your income has dropped this year, because of a retirement or the end of a pension, ask Service Canada to use an estimate of the current year instead of waiting for July.

The same income traps apply as for the GIS: RRSP and RRIF withdrawals count in full, dividends count at their grossed-up amount, and TFSA withdrawals do not count at all. The GIS guide lists what counts and what does not.

When and how to apply

• Allowance: apply 6 to 11 months before your 60th birthday. If you are already 60 to 64, apply as soon as possible; back payments are limited to 11 months plus the month you apply.
• Allowance for the Survivor: you can apply no earlier than 11 months before your 60th birthday, and otherwise as soon as you are widowed and aged 60 to 64.
• Apply online through My Service Canada Account or with the paper application; have your spouse's SIN (or death certificate) and your residence history ready.
• File a tax return every year; it is how the benefit is renewed each July.

What happens at 65

Both benefits end the month you turn 65. From then on you receive the OAS pension ($762.50 a month at ages 65 to 74 this quarter) and, if your income is still low, the GIS (up to $1,138.90 for a single person). Service Canada usually enrols you automatically and writes to you around your 64th birthday; if no letter arrives, apply. Do not defer OAS in this situation: the GIS requires that you be receiving OAS, so deferring would mean losing the supplement for every deferred month.

Also check the CPP survivor's pension if you are widowed: it is a separate, taxable benefit from the Canada Pension Plan and can be paid alongside the Allowance for the Survivor, though it counts as income in the Allowance calculation.